Transforming agriculture: N Visweswara Reddy

It was in the fields of rural India where N Visweswara Reddy first learned the heartbreak of a failed harvest. Growing up amid a community of farmers, he witnessed their struggles firsthand and came to understand how a transformer could make all the difference by powering irrigation.

He also saw what happened when transformers failed and the devastating impact of an inadequate water supply.

"We saw a lot of crops spoiled for want of water," Reddy recalls. "So my father asked me to start in the transformer market, and that’s how it began."

Shirdi Sai Electricals began as a transformer repair company in 1994, but the changing economic situation saw it quickly evolve.

"By 2000, reforms took place. Utilities were unbundled into distribution companies and transmission companies, and those distribution companies came to us," says Reddy, now the company’s Chair and Managing Director.

By approaching the utility companies, he came to understand their requirements, and the company swiftly moved into the construction of substations and lines.

Scaling up

In 2004, Shirdi Sai Electricals took the next step, entering the realm of transformer manufacturing. But it was during Reddy’s first trip to Europe that he became truly inspired.

"There, I saw the difference between us and the Europeans and the rest of the world in terms of process, quality, equipment – everything. There, I got an idea of how it should be and what we need to do," he remembers.

"From that point, we kept gradually improving our facilities and capacities in the distribution segment. Our main factory is located in a place where there are no auxiliary industries, so we focused on backward integration with a lot of automation."

Sustainability was on the company’s radar early on. As early as 2008, Shirdi Sai Electricals began producing amorphous metal core transformers with low energy losses.

"Those are green transformers, which we’ve been producing since then," Reddy says. "In the process, we won one or two energy efficiency awards."

Acquisitions have also played a crucial role in scaling the company’s capabilities.

"About six years ago, we acquired a company called Indo Tech Transformers, located in Chennai. Our range of transformers went up to 220-kilovolt class," he points out.

More recently, it acquired a General Electric unit in Naini, Uttar Pradesh, which is already showing great potential.

"It’s doing INR36.8 billion revenue [US$430.9 million] and next year it’s targeted for INR66 billion [US$772.8 million]," Reddy says. "It has the potential for INR100 billion [US$1.2 billion]. We already have on-hand orders worth about US$1 billion for that facility."

The company now manufactures a full range of transformers, up to 400-kilovolt class, along with reactors.

"As far as transformers are concerned, we are a one-point solution – the customer will get everything from us," he adds.

On the sunny side

While its roots lie in power distribution, Shirdi Sai Electricals has now emerged as a major player in India’s solar energy sector.

"We got some tenders for solar parks, so we looked into that," Reddy says.

Realizing the fluctuations in module prices from China, the company began exploring local manufacturing. Armed with that knowledge, it bid for the Government of India’s Production-Linked Incentive (PLI) Scheme.

"We started with four gigawatts. The government gave us INR18.75 billion [US$221.4 million] under Tranche 1. Then, under Tranche 2, we received about INR33 billion [US$389.4 million]," he says.

"So overall, we were allocated about INR51.75 billion [US$610.2 million] from the central government under the PLI Scheme to establish a 10-gigawatt facility."

This end-to-end integration allows Shirdi Sai Electricals to offer solar park developers a unique proposition.

"If somebody wants to establish a solar park, even on a long-term contract, we can give them a fixed cost," Reddy explains.

"If they pay 20 percent in advance to block the key materials like copper, aluminum and steel, then the cost will be constant. We can do the same price even after two or three years."

Collaboration is key to such guarantees, with the company working closely with suppliers like Synthesis Winding Technologies, Proterial and Sankalp Steels to better support its clients.

However, its ambitions don’t end there. This year, the company launched a conductor manufacturing unit with a daily capacity of 150 metric tons, scaling up to 300 metric tons. In addition, it’s setting up a joint venture inverter manufacturing unit in Bengaluru.

All of this makes it a near one-stop shop for solar engineering, procurement and construction players, supplying everything from modules to inverter cables and inverter-duty transformers.

"We are one of the largest suppliers of inverter-duty transformers in India today," he adds.

A world-class operation

In a significant move toward global leadership in transformer manufacturing and renewable energy integration, the main plant in Kadapa is now undergoing a massive expansion. According to Reddy, the upgraded facility will significantly boost the business’ distribution and transmission capabilities.

"That is especially to cater to the requirements of export to Western countries," he says, adding that the project also aims to support renewable energy infrastructure.

At the same time, a new Special Large Transformer facility is under construction, which the company expects to be the largest of its kind globally. And, as it seeks to localize critical materials production, the company is also setting up an electrical steel manufacturing unit in India through a joint venture with major industry players.

"Of course, we have a minor share as partners, but the number one aim is to get the technology to India," Reddy says.

"Number two is to have a proper supply chain. With this material, we can produce energy-efficient transformers for India and the world."

Another potential game-changer is Shirdi Sai Electricals’ efforts to produce polysilicon, a vital component in solar and semiconductor chip manufacturing, within India. The company is working closely with international engineering firms to bring the project to life, with Reddy expecting construction to begin in six-to-seven months’ time.

It’s indicative of its solutions-based approach, which stems from those early days of agricultural hardship.

"We want this company to be alive and withstand all changes and circumstances so it lives for another 100 years," he concludes.